While Najib conceded higher water tariffs were needed to improve infrastructure and discourage wastage, he opposed the 25% to 27% increase, expressing concern over its timing.

“An increase of 25% to 27%, all at once, is not a small sum. Manufacturing plants use a lot of water. Do not give businesses an excuse to increase the price of goods at this time,” he said in a Facebook post.

At a point when inflation was expected to be high, Najib said the government should not be introducing major changes to economic policies.

“This is because the expectation that the inflation rate will be higher will actually lead to a higher inflation rate,” he said, calling it a “self-fulfilling prophecy”.

Urging the government not to look for trouble, he asked that the increase be postponed. He suggested that any increase be gradual and only when the inflation rate and expectations were lower.

“Ultimately, the ones affected will be the end users — the people.”

On June 22, the Cabinet agreed to adjust water supply tariffs for the non-domestic categories and special categories in Peninsular Malaysia and Labuan, involving an average increase of 25 sen per cubic metre, effective Aug 1.

The government also agreed to maintain the water tariff for the domestic category (residential premises) in Peninsular Malaysia and Labuan in view of the rising cost of living.

It follows the Cabinet’s decision to use the tariff setting mechanism to reorganise the management of the country’s water supply.